Man purchases luxury sports cars by using govt COVID-19 relief funds
A 38-year-old man in California has reportedly purchased luxury sports cars including a Ferrari and a Lamborghini besides spending COVID-19 relief funds for going to lavish vacations.
Mustafa Qadiri has allegedly bought expensive sports cars, including Ferrari, Bentley, and Lamborghini, using the COVID-19 relief money for small businesses. He also used the money for enjoying vacations and personal expenses.
He submitted claims for his four businesses in May and June 2020 with altered bank accounts, fake federal tax return forms and someone else’s identity, as per a report in USA Today citing the US Attorney’s Office of California.
According to a federal indictment, Qadiri obtained about $5 million in Paycheck Protection Program money after claiming to own four businesses, none of which are in business.
The authorities seized the luxury sports cars besides confiscating the remaining $2 million from his bank accounts. Qadiri had been last week but later released on a $100,000 bond.
Federal agents have seized three luxury sports cars allegedly purchased by Mustafa Qadiri, 38, of Irvine, with fraudulently obtained COVID-19 Payment Protection Program (PPP) loans. pic.twitter.com/MIdkjFeZx2
— US Attorney L.A. (@USAO_LosAngeles) May 7, 2021
He has pleaded not guilty to multiple charges including bank fraud, wire fraud, aggravated identity theft, and money laundering, according to the US Attorney’s Office.
Prosecutors said Qadiri submitted fraudulent PPP loan applications to three banks on behalf of four companies that didn’t actually exist. According to the indictment, the applications included altered bank records, fake tax returns, and false information about employees.
Qadiri also used someone else’s name, Social Security number and signature to fraudulently apply for one of the loans, prosecutors added.